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  • Exam Name: Commercial Negotiation
  • Last Update: 29-May-2024
  • Questions and Answers: 162
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L4M5 Questions and Answers

Question # 1

An organisation is developing the specification for a capital purchase project. An important stakeholder has doubt on the draft specification. The buyer invites him to the product function meetings. In these meeting the attendees can raise their concerns, the specification development team takes in all the concerns and adjusts the specification accordingly. What kind of technique is the specification development team using?

A.

Directive

B.

Persuasive reasoning

C.

Coalition

D.

Visionary

Question # 2

According to Professor Gavin Kennedy, in which of the following forms of dispute resolution, both parties will voluntarily exchange their ideas and beliefs?

A.

Litigation

B.

Persuasion

C.

Negotiation

D.

Gambling

Question # 3

Which of the following is the area where two or more negotiating parties may find common ground?

A.

Zone of potential agreement

B.

Zone of proximal development

C.

Walk away area

D.

Best alternative to a negotiated agreement

Question # 4

Stalemate is morelikely to happen if both parties trade more variables in a commercial negotiation. Is this assumption true?

A.

No, because the party who offers more variables will have lower bargaining power

B.

Yes, because the negotiation will last endlessly if there aretoo many variables

C.

No, because more variables will facilitate more possible negotiated outcomes

D.

Yes, because more variables will cause more conflicts of interest

Question # 5

Distributive approach in negotiation is typified by which of the following?

A.

Distributive approaches are inherently inferior tointegrative approaches in commercial negotiation

B.

Both parties understand each other's goals

C.

Each party attempts to maximise the value obtained at other's expense

D.

Both parties share 50:50 of the 'pie'

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